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Driving success in manufacturing with the Canada Digital Adoption Program

Driving success in manufacturing with the Canada Digital Adoption Program

4 Minute Read

The Advanced Manufacturing Outlook Report reveals several opportunities and challenges that manufacturers are facing in a digital landscape. Here, we discuss the most important takeaways for Canadian advanced manufacturers.

We also discuss how the Canada Digital Adoption Program (CDAP) offers a path forward with a government grant and interest-free loan. With the grant, eligible Canadian businesses can fund a digital advisor and chart their roadmap to digital transformation.

Federal Government Announcement Monday, February 19, 2024

The Canada Digital Adoption Program is fully subscribed and no longer accepting new applications for the Boost Your Business Technology grant. MNP Digital remains committed to supporting your digital adoption goals, view our SMB solutions for more information.

Advanced manufacturing companies are navigating a digital landscape where strategic investments are crucial for future success. Insights from the latest Annex Business Media Advanced Manufacturing Outlook Report reveal the current digital technology opportunities and challenges manufacturers face.

This article discusses some of the most noteworthy trends. We also take a closer look at the Canada Digital Adoption Program (CDAP), and how it can help you create a comprehensive roadmap for your digital journey.

Seizing opportunities in the digital era

The report reveals a consensus among manufacturers that investing in digital technology is a catalyst for business growth. Lower operational costs and increased productivity are among the benefits.

The advent of Artificial Intelligence (AI) promises increased capabilities, provided the implementation is executed strategically. Investing in advanced technology allows manufacturers to stay nimble. It paves the way for higher margins, easing pricing pressures, and uncovering new business opportunities.

Read the Advanced Manufacturing Outlook Report

Download the report to see the full findings on survey questions around implementation hurdles, where manufacturers invest, types of cyberattacks reported, and more.

Navigating the challenges

Despite the promising prospects, manufacturers in Canada face significant challenges in their digital transformation journey:

  1. Skills gap
  2. The survey highlights a lack of skilled workers is impeding the adoption of new technology. The manufacturing sector is facing a lack of young, skilled workers to meet the demands of advancing technology.

  3. Funding challenges
  4. Manufacturers face financial uncertainties, including high interest rates and inflation in 2024. This economic climate is forcing companies to find ways to maintain growth with less funding available.

  5. Cybersecurity threats
  6. In the current digital landscape, cybersecurity poses a growing threat to manufacturers. Given the increased vulnerability, having the right technology to safeguard business operations has never been more crucial.

Canada Digital Adoption Program

Only 47 percent of surveyed manufacturers have a concrete plan for their digital transformation. CDAP steps in as a solution, offering support to develop a comprehensive digital strategy. Through this program, manufacturers can ensure they are investing in the technologies that will work together to serve their specific objectives and unlock funding opportunities to give them a head start.

How CDAP works

  • Technology review grant: CDAP provides up to $15,000 in grants for qualifying businesses that covers 90 percent of the cost to engage an approved digital advisor.
  • Eligibility: The Boost Your Business Technology Grant is available to Canadian-owned businesses with 1 – 499 employees, generating annual revenue between $500,000 and $100 million in one of the past three tax years.
  • Tailored plans: MNP's digital advisors work collaboratively with manufacturers to understand their goals, challenges, and available technology solutions. The result is a tailored plan that identifies key investment areas and provides a roadmap for implementation.
  • Interest-free loan: Once the digital transformation plan is in place, manufacturers can apply for a five-year interest-free loan of up to $100,000 to facilitate its implementation.

Potential use cases for manufacturers

  • Improve operation efficiency: Invest in robotics, sensors, or software to enhance production planning and scheduling.
  • Back office automation: Acquire ERP, payroll, or digital labelling technologies and follow a roadmap for seamless integration with your team.
  • IT digital foundations: Understand your data management strategy, conduct a complete cybersecurity risk assessment, and implement strategies to protect your data.
  • Skilled workers: Leverage CDAP's Wage Subsidy to receive funding of up to $7,300 per eligible hire when hiring youth (age 18 – 30) to implement new technologies and digital strategies.
  • Build credibility: Enhance your marketing efforts and improve your website to increase brand awareness and customer experience with additional CDAP funding opportunities.

Why now?

Long-term capital loans will continue to reflect new market conditions. On top of operating with less cash, manufacturers can expect more restrictive funding moving forward. It is important to take a comprehensive look at what digital technologies you should prioritize. Doing so will ensure the best return on your investment.

Many small and medium-sized manufacturers miss out on operational efficiencies due to a lack of real-time reporting systems. Developing a new ERP system or connecting your equipment to the cloud may seem daunting. Yet, if you had access to all the relevant data, it could improve your business decisions.

Get started today

Delve deeper into the CDAP program and understand how it can transform your manufacturing business. Click below to learn more. Reach out to [email protected] for more information.


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